Webster's 1983 Definition of Inflation

According to Webster's New Universal Unabridged Dictionary published in 1983 the second definition of "inflation" after "the act of inflating or the condition of being inflated" is:

 "An increase in the amount of currency in circulation, resulting in a relatively sharp and sudden fall in its value and rise in prices: it may be caused by an increase in the volume of paper money issued or of gold mined, or a relative increase in expenditures as when the supply of goods fails to meet the demand.

This definition includes some of the basic economics of inflation and would seem to indicate that inflation is not defined as the increase in prices but as the increase in the supply of money that causes the increase in prices  i.e. inflation is a cause rather than an effect. 

Pro-gold speech by Royal Bank's Fell
 

What is the Real Definition  of Inflation? 
 

Gold is now the currency of choice for at least the next 5 years! (its a currency where the supply is limited and tangable unlike paper) no currency on the planet is backed by anything. All currencies are increasing in supply except gold!

Is gold a currency, a commodity, or a store of value?

The answer is all three, but gold bullion is primarily a currency and a store of value and is a hedge against fiat paper money and inflation. As an economic consultant in 1966 Alan Greenspan wrote: "In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. Gold stands in the way of this insidious process."

At Royal Bank we trade gold bullion off our foreign exchange desks rather than our commodity desks because that's what it's is -- a global currency.

As J.P. Morgan said in 1913: "Gold is money and nothing more."

It was Alan Greenspan again who said in a 1999 testimony before the U.S. House Banking Committee that "gold represents the ultimate form of payment in the world."

Gold bullion is the only currency worldwide which is freely tradable and which is unencumbered by vast quantities of sovereign debt and prior obligations.

Gold bullion is the one investment and long-term store of value which cannot be adversely impacted by corrupt corporate management or incompetent politicians -- each of which are in ample supply on a global basis.

As a currency and a store of value gold has stood the test of many centuries.

At the current level of about $625 per ounce, gold has risen about 250 percent over the last five years.

Nevertheless, I believe gold bullion is now in the very early stages of a long-term secular bull market which will carry it to much higher levels over the coming decade.

Greenspan waved off the necessity for the CFTC to regulate gold derivatives, telling Congress to fear not, that the “central banks stand ready to lease gold in increasing quantities should the price rise.”